Technical Line - A holder’s accounting for cryptocurrencies

18 Oct 2018 PDF
Subject AccountingLink
Publications Technical Line


We believe cryptocurrencies meet the definition of indefinite-lived intangible assets, and holders should account for them at historical cost less impairment by applying ASC 350. However, investment companies in the scope of ASC 946 should account for their investments in cryptocurrencies as “other investments” and should subsequently measure them at fair value through earnings. Our Technical Line also discusses issues such as determining the ownership of cryptocurrencies held through third parties (e.g., exchanges), accounting for cryptocurrencies received in hard fork or airdrop events or as a result of mining activities and internal control considerations for entities that invest in cryptocurrencies.

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